Fate of 54 Plus Club construction on the table as bids over
budget

Posted May 20,
2014

Plans to expand the New Tecumseth Recreation
Centre (NTRC) to accommodate the 54 Plus Club in time for an October
31st opening, have hit a financial wall that not only threatens its
timing, but the project itself, if a funding source isn't tapped.

A special council meeting tonight has been scheduled to deal with the
fact the lowest of five qualified tenders received, - Citycore
Construction Inc - even after a series of revisions to the plans were
made that reduced the costs by 13.5 percent, remains approximately
$309,000 over budget . This includes project planning, design, and
supervision ($146k), and five per cent contingency ($49k). The original
tender, excluding HST, was $1.15 mllion.

The 54 Plus Club would be the primary tenant of the proposed 4,000 sq.
ft facility. It would include a multi-use room, lounge, storage,
kitchenette, and washrooms. It would also be available for public
rentals and other program uses.

New Tecumseth has allocated $630,106 from parks and recreation
development charges, and the 54 Plus Club has committed $256,000,
putting the budget at $886,106.

Two options will be tabled tonight including drawing the $309,616 from
the parks and recreation development, raising the Town's commitment to
approximately $940,000. While the other is meeting with 54 Plus Club
representatives to determine whether further changes can be made to the
plans that reduce its construction costs.

So far, parking lot expansion has been eliminated and landscape plans
scaled back, roof construction changes in "the manufacturer's
processes" are proposed, and the contractor has offered a further
reduction of $5,000.

Under proposed terms of the revised agreement that increases the Town's
contribution, the 54 Plus Club would have until Dec. 31, 2015 to
contribute its full share, $256,000, or would be in default of the
agreement. They would be required to have $5 million in liability
insurance, and serve one year notice of termination.